Use app×
Join Bloom Tuition
One on One Online Tuition
JEE MAIN 2025 Foundation Course
NEET 2025 Foundation Course
CLASS 12 FOUNDATION COURSE
CLASS 10 FOUNDATION COURSE
CLASS 9 FOUNDATION COURSE
CLASS 8 FOUNDATION COURSE
0 votes
126 views
in International Business by (29.6k points)
closed by

What is IMF? Discuss its various objectives and functions.

1 Answer

+1 vote
by (29.7k points)
selected by
 
Best answer

Trade Agreements: 

At the international level, there are various international organisations such as the World Bank, IMF, and WTO for fostering economic cooperation, trade and investments . among the countries. 

1. World Bank 

The International Bank for reconstruction and development i.e. World Bank was established in 1945, whose main objectives were to aid the task of reconstruction of the war-affected economies of Europe and assist in the development of the underdeveloped nations of the world. 

Functions:

To bring about economic growth and widen the scope of international trade. 

To develop infrastructural facilities such as energy, transportation, etc. 

To help different countries for raising cash crops so that their income rises. 

In addition to providing financial assistance for infrastructure development, agriculture, industry, health, etc.

2. International Development Association (IDA)

International Development Association (IDA) was set up in 1960 as a part of the World Bank. IDA was established soft loans primarily to provide soft loans to the poorest countries. So it is called the Soft Loan Window of the IBRD. 

Objectives of IDA

  • To provide development finance on easy terms to the less developed countries 
  • To provide assistance for poverty eradication in the poorest countries 
  • To provide finance at concessional interest rates in order to promote economic development, raise productivity and living standards in less developed nations 
  • To extend macroeconomic management services relating to health, education, nutrition, human resource development and population control.

3. International Finance Corporation (IFC) IFC was established in July 1956 in order to provide finance to the private sector of developing countries. All the members of the World Bank are eligible to become members of IFC.

4. The Multinational Investment Guarantee Agency (MIGA) The Multinational Investment Guarantee Agency was established in April 1988 to supplement the functions of the World Bank and IFC. 

Objectives of MIGA 

  • To encourage direct foreign investment into the developing countries 
  • To provide insurance cover to investors against political risks 
  • To provide guarantee against noncommercial risks 
  • To ensure new investments and expansion of existing investments 
  • To provide promotional and advisory services 
  • To establish credibility. 

5. International Monetary Fund (IMF) International Monetary Fund: – 

it is the second international organization next to the World Bank. It came into existence in 1945 and its objective is the maintenance of exchange rates and providing short term loans to the countries facing short term foreign exchange problems. 

Objectives of IMF 

  • To provide international monetary cooperation through a permanent institution. 
  • To facilitate the expansion of the balanced growth of international trade and to promote and maintain high levels of employment. 
  • To promote exchange rate stability among member countries. 
  • To help in the establishment of the International Payment System. 

6. World Trade Organisation (WTO)

Welcome to Sarthaks eConnect: A unique platform where students can interact with teachers/experts/students to get solutions to their queries. Students (upto class 10+2) preparing for All Government Exams, CBSE Board Exam, ICSE Board Exam, State Board Exam, JEE (Mains+Advance) and NEET can ask questions from any subject and get quick answers by subject teachers/ experts/mentors/students.

...